AI surge strains insurers as 35% demand auditable compliant outputs

Governance pressure shows up with 40% calling for clear frameworks in solution use.

About 70% of buy-side firms, including insurers, are now using artificial intelligence in their front-office investment operations, up from around 10% a year earlier, according to SimCorp’s 2026 InvestOps Report.

The global study, based on a survey of 200 executives from asset managers, pension funds and insurance companies, shows that AI has moved from pilot projects to business-critical use, particularly in investment decision-making and portfolio management. 

The report said insurers are increasingly relying on AI to improve data analysis, automate workflows and support investment teams, as pressure grows to manage large and complex portfolios more efficiently.

The survey found that over half (58%) of firms are prioritising the consolidation of technology vendors and platforms, whilst 54% are focused on modernising their technology architecture and data infrastructure. 

Vendor stability was cited by 57% of respondents as the most important factor when choosing AI solutions, followed by access to innovation at 54% and analytical flexibility at 47%. 

Regulatory compliance and governance were also highlighted, with 40% pointing to the need for clear governance frameworks and 35% stressing the importance of auditable and compliant AI outputs, reflecting the regulatory environment faced by insurers.

The report also noted growing interest in using AI and advanced analytics in private markets and alternative investments, an area where many insurers are increasing their allocations. 

In 2026, 51% of respondents said alternatives offer the greatest opportunity for technology-driven improvement, up from 27% in 2025, as firms look to automate processes and reduce manual work in these more complex asset classes.